About 720,000 vehicles, including sedan, truck and bus, were produced in Iran during March 21-Nov. 21, showing a growth of 70 percent year-on-year, said the deputy industries, mines and trade minister.

Mohsen Salehi-Nia added that the annual vehicle production capacity of the country is 2 million.

"Plans have been made to produce 1.2 million cars by mid-March 2015," he said.

Salehi-Nia noted that $400 million earned from the implementation of Subsidy Reform Plan have been allocated to the industrial sector, adding that small- and medium-scale industrial units are a priority.

The official said a related agreement has been signed with the Bank of Industries and Mines.

Salehi-Nia said production of commodities, covered by the ministry, experienced a significant growth during March 21-Nov. 21 compared to last year's figure, stressing that conditions are expected to improve further by mid-March 2015.